The Art of Getting A Loan Officer Referral

Generally you can tell how well a loan officer runs hisyou would like the opportunity to help someone out in a
business by the amount of referrals he gets for newfield that you are an expert in.
loan applications. Successful mortgage professionalsDON'T SAY: "My goal is to close ten loans this month.
tend to get a large percentage of referrals give toDo you know anyone who may need to get a
them by former customers and referral partnershipsmortgage?"
with real estate agents, attorneys, financial planners,DO SAY: "My goal is to provide not only you with
etc.professional financing assistance, but also your friends
Mortgage professionals that are struggling tend toand family. Do you know anyone who may need help
have very few, if any, loan officer referrals. Theywith a financing situation?"
typically generate almost all of their loan business from2. Provide awesome customer service. And to me this
prospecting. And while prospecting does have its placebasically means keeping the client informed throughout
and is very important, creating a system that producesthe financing process. I know of too many originators
loan officer referrals should be the top priority.that only talk to their customers at application and at
Why such focus on getting referrals?close. Maybe once or twice during the process to get
They are easier to work with. Which loan would youa updated pay stub or bank statement, but that's
rather have? Loan A was generated from a prospectabout it. You want to do your best to take away as
call on one of your classified ads. Loan B is a referralmuch of the stress involved in the mortgage process
from a satisfied previous customer of yours.as possible.
Loan B of course! From the outset, the prospect fromIf your service stinks, you just won't get any
Loan A doesn't know who you are, and you don'trecommendations. Don't just see the current customer.
know them either. There is no trust formed yet.See all of the people that this customer is involved
In the case of Loan B, you have already been pre-soldwith on a daily basis. Good or bad, he's going to talk
by your former customer. Before you even meet, youabout you. Providing stellar customer service ensures
will have already developed a high level of trust withthat people are saying positive comments about you.
this person.3. Ask in different ways. Besides asking more
So how do you go about getting more loan officerfrequently, you need to ask for referrals in different
referrals?ways. You can ask for a referral in person right after
1. Ask for them. It's amazing to me how few mortgagethe application. Or maybe mail out a survey asking for
professionals ask for referrals. You may still get areferrals. Or do a post closing phone call to ask for
referral or two here and there, but you drasticallyreferrals. People respond to differently to each form
increase the chances of receiving referrals by justof communication. By offering more avenues of
asking for them. The worst case scenario is that thereceiving referrals you will increase your chances of
person says no. So what? Maybe right now they justreceiving them.
don't know anyone.How many referrals did you receive last year? The
But then again, maybe they do know someone. Theamount of loan officer referrals you got is a fair
point is that if you don't ask, you will never know.barometer of the direction your business is heading. By
And asking for a referral doesn't have to be a difficultfollowing the tips I suggested and making referral
or unpleasant task. Don't ask for a referral in thegeneration a higher priority, you can have a successful
sense of asking for business. Ask in the sense thatloan officer career closing more loans with less effort.